01—Abstract
Summary
Summary of the 8-K filed July 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Brown & Brown reported Q2 2026 total revenues of $1.68 billion (the press release rounds to $1.7 billiona), up 30.4% year over year.
The growth was driven mainly by acquisitions, including the pending-then-closed acquisition of RSC Topco (Accession). Organic Revenue declined 0.7%, and Organic Revenue with Contingents rose only 0.7%, so underlying organic growth remained flat to slightly negative. Acquisitions contributed roughly $393 millionb of Q2 commissions and fees.
Net income attributable to the Company rose 24.7% to $288 millionc, but the pre-tax margin fell to 22.9% from 24.2%, and EBITDAC Margin - Adjusted fell to 35.7% from 36.7%. Per-share results were weaker than net income growth. Diluted EPS rose 7.7% to $0.84, and Diluted EPS - Adjusted rose 3.9% to $1.07.
The diluted share count increased to 334 million from 293 million, reflecting the 2025 equity offering and acquisition-related share issuance. Amortization more than doubled to $110 million, and interest expense doubled to $100 milliond as debt increased. For the first half, Diluted EPS fell 1.6% to $1.90, while Adjusted EPS rose 6.0% to $2.46.
Management's tone is positive, citing 'great momentum' into the second half. Investors should weigh the flat organic growth, margin compression, and dilution against the acquisition-driven top-line gain.
The filing also carries a caveat: the forward-looking statements note that final Q2 2026 results could differ from these preliminary unaudited figures. The company holds its conference call on July 28, 2026.
02—Key points
Key Highlights
- Total revenues of $1.68B (press release: $1.7B) rose 30.4% year over year, but the increase was largely acquisition-driven, with about $393M from acquisitions in Q2.
- Organic Revenue declined 0.7% and Organic Revenue with Contingents grew only 0.7%, signaling weak underlying organic growth.
- Net income attributable to the Company rose 24.7% to $288M, but the income before taxes margin fell to 22.9% from 24.2%.
- Diluted EPS rose 7.7% to $0.84 and Adjusted Diluted EPS rose 3.9% to $1.07. The diluted share count rose to 334M from 293M, which limits per-share growth.
- EBITDAC Margin - Adjusted fell to 35.7% from 36.7%, and first-half Diluted EPS declined 1.6% to $1.90 even though Adjusted EPS rose 6.0% to $2.46.
- Amortization ($110M vs. $50M) and interest expense ($100M vs. $51M) rose sharply, driven by acquisitions and higher debt. Long-term debt reached about $7.3B, and the company repurchased $500M of treasury stock in the first half.
- The filing notes that final Q2 2026 results may differ from these preliminary unaudited numbers, and the company's conference call is on July 28, 2026.
03—Questions
Frequently Asked Questions
Why did revenue grow 30% if organic revenue declined?
Most of the 30.4% increase came from acquisitions, mainly the Accession (RSC Topco) transaction, which contributed about $393M of Q2 commissions and fees. Organic Revenue, which excludes acquisitions, divestitures, currency effects, and a litigation-related impact, fell 0.7%. The litigation-related impact alone was about $18M in the quarter.
Why did net income grow faster than diluted EPS?
Diluted share count rose about 14%, from 293M to 334M, due to the 2025 equity offering and shares issued in the acquisition. Net income grew 24.7%, but spread across more shares, diluted EPS grew only 7.7%.
What do the adjusted and GAAP EPS figures mean?
Diluted EPS is GAAP. Adjusted EPS of $1.07 excludes amortization, acquisition and integration costs, the change in estimated earn-out payables, and similar items. Amortization is the largest adjustment, and it rose sharply with acquisitions. Adjusted figures are non-GAAP and should be compared with GAAP results. The company says the GAAP figure excludes escrow mark-to-market under ASC 260 because that effect is accretive in these periods.
Is margin pressure a concern?
Margins declined. The pre-tax margin fell to 22.9% from 24.2%, and EBITDAC Margin - Adjusted fell to 35.7% from 36.7%. Acquired businesses and higher amortization and interest expense are the likely drivers, and the filing does not break out the cause. Investors should watch whether margins recover as acquired operations are integrated.
Does the filing indicate that these results could change?
Yes. The forward-looking statements say the company may determine, while finalizing Q2 2026 results, that actual results differ from the preliminary unaudited numbers in the release. Investors should look for any revised figures in subsequent filings or on the July 28 earnings call.
04—Continue